Donaldson v. Hartford Accident & Indemnity Co.

Citations

• 269 Pa. 456
• 112 A. 562
• 1921 Pa. LEXIS 586

Syllabus

<p>Principal and surety — Bond—Joint and several bond — Delivery • — ■Consideration—Surety company — Insurance—Subrogation.</p> <p>1. Untrue statements made by the principal debtor in a bond to the surety therein, will not operate to relieve the latter, if made without the knowledge of the obligee.</p> <p>2. Where a bond is joint and several, the surety will be held liable even though the principal debtor does not sign it, or signs after the liability has accrued, especially if the principal debtor is primarily liable for the debt aside from the provisions of the bond, which contains also a clause entitling the surety to subrogation to the obligee’s claim against the principal debtor.</p> <p>3. A bond or other instrument in writing imposing liability, is delivered when it is deposited in the mail, directed to the obligee or to some one, other than the obligor’s agent, to deliver it to the obligee.</p> <p>4. Where the terms of an obligation are definitely agreed upon, either orally or by correspondence, and by reason thereof the obligee surrenders an existing bond which is received and retained by the obligor, the later bond will be binding upon the parties as of the time the minds met in regard to it though it is contemplated that thereafter it shall be put in writing and delivered to the obligee.</p> <p>5. A party cannot receive and retain the consideration of a contract and yet claim to avoid liability on it.</p> <p>6. Where an obligation is returned to a surety simply for the purpose of correcting a mistake therein, the consideration having been paid at the time it was entered into, the obligee is not bound to disclose to the surety information which he acquired after its execution.</p> <p>I. A corporation issuing surety bonds for profit, is not relieved from liability by a variance from the contemplated method of performance unless such change is a material one.</p> <p>8. Such a company, though called a surety company, is in effect an insurance company, with the